To All Depository Institutions and Others Concerned in the Second Federal Reserve District:
In a press release, the Federal Reserve Board announced that is has established a private-sector working group to recommend steps to mitigate risks in the clearance and settlement of U.S. government securities.
The Working Group will explore ways the two major clearing banks could substitute for each other if the services of either were interrupted or terminated. The Working Group has been asked to prepare a final report before the end of 2003.
Staff of the Federal Reserve, the Securities and Exchange Commission and the Department of the Treasury will participate in the Working Group as observers and technical advisers.